Bank of America Charges $1.2 Billion in Expenses Following Regulatory Penalty

On Wednesday, Bank of America announced a charge of $1.2 billion in nondeductible expenses, reducing its net earnings per share by 17 cents. The expense relates to anti-money laundering and sanctions violations penalties disclosed by the U.S. Treasury Department on Tuesday. The Treasury stated that Bank of America effectively outsourced a critical component of compliance work to protect revenue. Bank of America said costs associated with rectifying the issues have been recorded as expenses.